Australian lithium hopeful Leo Lithium has confirmed receipt of the final proceeds from the sale of its interest in the Goulamina lithium project, in Mali, raising $177.6-million including interest.

The Perth-based company on Thursday said it had received $171.2-million from Chinese lithium giant Ganfeng Lithium Group for the Tranche 2 payment related to its 40% stake in Mali Lithium, the holding company of the Goulamina project in southern Mali. The final figure includes $6.4-million in interest.

The second-tranche proceeds follow Leo Lithium’s exit from the Goulamina project in late 2023, having failed to reach an agreement with the government over issues relating to the project. In November last year, Leo Lithium received $161-million, from which $44.7-million in capital gains tax, payable to the Mali government, has been deducted. 

With Goulamina sold, Leo has been scouring the market for merger and acquisition (M&A) opportunities. The company told investors that M&A remained a priority and decisions on capital return would depend on deal outcomes.

“Any decision on the return of Tranche 2 funds to shareholders will be made in connection with M&A activity currently being undertaken by the company,” Leo Lithium said in its ASX statement.

“Should a proposed acquisition involve the use of any of the Tranche 2 funds, the company will seek shareholder approval for that acquisition,” the company added.

“If no M&A opportunities are significantly progressed by the third quarter of 2025, the Tranche 2 funds will be returned to shareholders in the second half of calendar year 2025.”

The company said it was “steadily advancing a small number of lithium hard rock M&A opportunities” and remained “optimistic that one will be announced in the current quarter". Any deal, it added, would lay out how Tranche 2 funds would be used, including potential distributions to shareholders.

Meanwhile, Leo Lithium is facing an automatic ASX-delisting deadline by September 19. The company has been in discussions with the exchange regarding the possibility of relisting, should any acquisition be completed after that date.

“Where completion of an acquisition occurs after the upcoming automatic delisting date of 19 September 2025, the transaction structure will include an application to relist on ASX,” Leo said. “The company has engaged with the ASX on this process although there is no guarantee the ASX will approve any relisting application.”

To hedge currency exposure, Leo had previously secured a USD call option at an AUD:USD exchange rate of 0.6282 for $177-million, covering the expected Tranche 2 amount. The company confirmed it will now exercise the option, locking in the exchange rate and converting the proceeds into Australian dollars.

Goulamina was once considered Leo Lithium’s flagship asset and a globally significant hard rock lithium resource, developed in partnership with Ganfeng. 

The company now finds itself cashed up at a time when the lithium market has seen dramatic price corrections from its 2022 highs. Many juniors are struggling with funding and valuations have fallen, creating a fertile ground for acquisition-driven growth.